National Health Agency’s Public Consultation (No. 83/2021) on the calculation of regulatory capital in the supplementary health sector

Through Public Notice No. 83/2021, the Brazilian National Health Agency (“ANS”) has placed for Public Consultation a draft Resolution, which provides for the criteria for defining the standard model for calculating the regulatory capital of health care plan operators and benefit administrators in terms of operational and legal risks, as well as additional deductions for defining the adjusted net equity.

The new proposal defines a new procedure for calculating Risk-Based Capital[1] (“CBR”), which is calculated monthly by health care plan operators and benefit administrators.

In summary, the current Normative Resolution No. 451/2020 establishes that the CBR calculation should include only the underwriting risks, given that the credit, legal and operational risks are not yet provided for in the procedure.

The new draft Resolution, through Annex II-A, proposes that risk capital for these operators be constituted on the basis of credit, legal and operational risks, in addition to underwriting risks. Market risk has not yet been included in the calculation and will only be included when it is duly regulated by the ANS.

Another innovation by the new proposal refers to the improvement of the calculation of Adjusted Net Equity (“PLA”) of the operators, due to its importance for the evaluation and monitoring of the solvency of the entities operating in the supplementary health system. For this purpose, the ANS, in short, proposes the inclusion of an additional deduction of goodwill values from direct or indirect interest for the definition of the PLA, in addition to those already defined in Article 9 of Normative Resolution No. 451/2020.

The Public Consultation will be open from February 5, 2021 until March 21, 2021. Comments and suggestions can be sent through the ANS page and the full ANS Resolution proposal can be accessed through this link.

Demarest’s Insurance and Reinsurance team will continue to monitor the news related to Public Consultation Notice No. 83/2021 of ANS’ Resolution, and is available to provide any additional clarifications that may be necessary.


[1] Resolution No. 451 ANS, Article 2, III – Risk-Based Capital (CBR): capital rule that defines a variable amount to be observed by the operator according to predetermined factors as per the standard model established by ANS, comprising the main risks involved in activities related to the operation of private health care plans, which are: underwriting risk, credit risk, market risk, legal risk and operational risk.